SYSTEM AND METHOD FOR EXECUTING SECURE EXCHANGE TRANSACTIONS

• US 20080133396A1
• Filed: 08/01/2007
• Published: 06/05/2008
• Est. Priority Date: 08/01/2006
• Status: Abandoned Application

• Current Assignee: Alain L De La Motte
• Original Assignee: Alain L De La Motte
• Inventors: De La Motte, Alain L.
• Application Number:
  US11/832,645
• Publication Number:
  US 20080133396A1
• Time in Patent Office: Days
• US Class Current: 705/37
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange

Abstract

Embodiments of methods and/or systems for executing a secure exchange transaction are disclosed.

Claims

1. A method of executing a transaction in which one or more assets, A, is exchanged for one or more assets, B, comprising:

employing at least two trust-like entities to respectively hold the assets;

issuing promissory or trust notes to create liens on the respectively held assets; and

closing the transaction by issuing instructions for the trust-like entities to exchange the assets.

2. The method of claim 1, wherein the at least two trust-like entities comprise at least two trusts.

3. The method of claim 2, and further including retiring the promissory or trust notes.

4. The method of claim 2, wherein the at least two trusts have the same trustee.

5. The method of claim 2, wherein the at least two trusts employ the same custodian for the assets.

6. The method of claim 2, wherein one of A and B comprises securities and the other of A and B comprises funds.

7. The method of claim 2, wherein the assets for the transaction are not located in one country.

8. The method of claim 2, wherein the transaction is facilitated by an online marketplace for exchanging assets.

40. The method of claim 1, wherein said at least two trust-like entities comprise sub-trusts of a single trust, said sub-trusts being organized to hold a particular asset class.

41. The method of claim 40, wherein said sub-trusts comprise a form of trust-owned bankruptcy-remote structures or entities.

42. The method of claim 2, wherein said at least two trusts each have the same beneficiaries.

43. The method of claim 1, wherein the promissory note reflects the indebtedness of the trust-like entity to the note holder while also granting a beneficial ownership interest in the trust-like entity to the note holder corresponding either to the face value of the note or, where the asset held in trust is one or more securities, to the value of the one or more securities based on the daily market value of the one or more securities.

44. The method of claim 1, and further comprising:

replacing at least one of the promissory notes by one or more documents reflecting beneficial ownership interest in the corresponding trust-like entity in a particular number of units, where a unit is a standard subdivision of beneficial ownership employed with that corresponding trust-like entity.

45. The method of claim 3, wherein the retirement of at least one of the trust promissory notes occurs at a pre-determined maturity date or earlier through exercise of a put or a call option associated with the at least one trust promissory note.

46. The method of claim 1, wherein at least one of A and B comprises funds and at least the other of A and B comprises one or more securities;

and further comprising;

settling the exchange transaction after closing;

wherein settlement is done in a currency other than the currency of the funds used during the exchange of assets.

47. The method of claim 1, and further comprising:

settling the exchange transaction after closing;

wherein the settlement of the exchange transaction includes a swap of derivative instruments that derivate their respective values from the A or B assets exchanged.

48. The method of claim 6, wherein said at least two trusts are each arranged to aggregate and invest cash assets of the trust and/or aggregate and lend security portfolios of the trust for profit pending an exchange transaction in which the liquidation of the security or the use of the cash is called for in order to execute the exchange transaction.

9. A method of setting up and closing a sale transaction via two trusts having a common trustee comprising:

employing a first and second trust as substantially identical except that a first one holds the assets for sale and a second one holds the funds;

issuing respectively to the provider of the assets and the provider of the funds trust promissory or trust notes in exchange for receiving the assets and funds respectively, with liens placed on the assets and funds as a result; and

closing the transaction by issuing instructions for the assets and funds to be exchanged between the trusts.

10. The method of claim 9, and further comprising:

retiring the promissory or trust notes in exchange for receiving the assets from the second trust and the funds from the first trust, respectively.

49. The method of claim 9, wherein the exchange of assets for a trust promissory note results in a lien being placed on the particular assets exchanged for the particular trust note.

11. A method of securely closing a transaction comprising:

employing a first trust and second trust so that assets, if delivered to the trusts, respectively become assets of the trust with a first lien on the trust assets, respectively;

issuing trust promissory or trust notes from the first trust and the second trust to the providers of the assets, respectively;

receiving the assets for the first trust and the assets for the second trust; and

issuing instructions to close the transaction by having the first and second trust exchange their respective assets.

12. The method of claim 11, and further comprising:

retiring the promissory or trust notes after the transaction has closed by exchanging the first and second trust assets for the promissory or trust notes, respectively.

13. The method of claim 11, wherein the assets comprise securities for sale and funds to purchase the securities, respectively.

14. The method of claim 11, wherein the trustee for the first trust is also the trustee for the second trust.

50. The method of claim 11, wherein the trustee for the first trust is not the trustee for the second trust.

51. The method of claim 11, wherein the providers of the assets for the exchange transaction are fractional unit owners of a single trust of which said at least two trusts are sub-trusts;

and wherein said exchange transaction is closed within said single trust.

15. A method comprising:

employing a trust for at least one side of a two-sided transaction, wherein the trust holds assets to be exchanged in the transaction; and

issuing trust promissory or trust notes to the party providing the assets to be exchanged so that a lien is placed on the assets.

16. The method of claim 15, and further comprising:

closing the transaction in response to instructions in which the assets held by the trust are exchanged for other assets.

17. The method of claim 16, wherein the other assets were provided by another trust.

18. The method of claim 17, wherein the trust for at least one-side of a two-sided transaction and the another trust have a common trustee.

53. The method of claim 15, wherein said trust is also employed for the other side of the two-sided transaction.

54. The method of claim 53, wherein said trust is employed to hold assets for both sides of the transaction to be exchanged in the transaction;

and

wherein said trust issues trust promissory or trust notes to the parties on both sides of the transaction providing the assets to be exchanged so that a lien is placed on the assets.

19. A system comprising:

one or more computing platforms;

said computing platforms adapted to execute a transaction in which one or more assets, A, is exchanged for one or more assets, B;

said system operable to;

employ at least two trust-like entities to respectively hold the assets, issue promissory or trust notes to create liens on the respectively held assets, and close the transaction by issuing instructions for the trust-like entities to exchange the assets.

20. The system of claim 19, wherein the at least two trust-like entities comprise at least two trusts.

21. The system of claim 20, said system being further operable to retire the promissory or trust notes.

22. The system of claim 20, wherein said system is operable to employ two trusts in which the same trustee is employed.

23. The system of claim 20, wherein said system is operable to employ two trusts in which the same custodian for the assets is employed.

24. The system of claim 20, wherein said system is operable for transactions in which one of A and B comprises securities and the other of A and B comprises funds.

25. The system of claim 20, wherein said system is operable for transactions in which the assets for the transaction are not located in one country.

26. The system of claim 20, wherein said system is operable for transactions facilitated by an online marketplace.

52. The system of claim 20, wherein the providers of the assets for the exchange transaction are fractional unit owners of a single trust of which said at least two trusts are sub-trusts;

said system being operable to close said exchange transaction within said single trust.

27. A system comprising:

one or more computing platforms adapted to execute one or more exchange transactions;

said system operable to;

employ a trust for at least one side of a two-sided transaction, wherein the trust holds assets to be exchanged in the transaction, and

issue trust promissory or trust notes to the party providing the assets to be exchanged so that a lien is placed on the assets.

28. The system of claim 27, wherein said system is operable to close the transaction in response to instructions in which the assets held by the trust are exchanged for other assets.

29. The system of claim 28, wherein said system is operable for transactions in which the other assets are provided by another trust.

30. The system of claim 29, wherein said system is operable for transactions in which the trust for at least one-side of a two-sided transaction and in which the another trust have a common trustee.

31. A system comprising:

one or more computing platforms;

said computing platforms adapted to execute a transaction in which one or more assets, A, is exchanged for one or more assets, B;

said system comprising means for employing at least two trust-like entities to respectively hold the assets, means for issuing promissory or trust notes to create liens on the respectively held assets, and means for closing the transaction by issuing instructions for the trust-like entities to exchange the assets.

32. The system of claim 31, wherein said means for employing at least two trust-like entities comprises means for employing at least two trusts.

33. The system of claim 32, said system further comprising:

means for retiring the promissory or trust notes.

34. The system of claim 32, wherein said means for employing at least two trusts comprises means for employing the same trustee.

35. The system of claim 32, wherein said means for employing at least two trusts comprises means for employing the same custodian for the assets.

36. A system comprising:

one or more computing platforms adapted to execute one or more exchange transactions;

said system comprising means for employing a trust for at least one side of a two-sided transaction, wherein the trust holds assets to be exchanged in the transaction, and

means for issuing trust promissory or trust notes to the party providing the assets to be exchanged so that a lien is placed on the assets.

37. The system of claim 36, wherein said system further comprises means for closing the transaction in response to instructions in which the assets held by the trust are exchanged for other assets.

38. The system of claim 37, wherein said system further comprises means for executing transactions in which the other assets are provided by another trust.

39. The system of claim 38, wherein said system comprises means for executing transactions in which the trust for at least one-side of a two-sided transaction and in which the another trust have a common trustee.